After Eli Lilly agreed to buy ImClone Systems for $6.5 billion, a growing number of analysts questioned whether Lilly had overpaid. Whether or not Lilly will be able to raise the money is under scrutiny, according to The New York Times.
Eli Lilly announced the $70-per-share deal on Monday in order to beat out an offer of $62 a share from Bristol-Myers Squibb.
Lilly said it would have to raise $2 billion to $3 billion in debt, which it believed it could easily attain despite the current economic crisis. The remainder would come from its $6 billion in cash.
Both Moody’s Investor’s Service and Fitch Ratings said that they would review Lilly’s debt ratings for possible downgrade.
Credit Suisse’s Catherine Arnold was noted by the NYT that Lilly may have to forgo future deals after paying the cash and taking on further debt.